Texas Senate Advances Bitcoin Reserve Bill

Texas Senate Advances Bitcoin Reserve Bill

Texas Senate Bill 21 (SB-21), proposing a strategic reserve of Bitcoin and other cryptocurrencies, cleared the Texas Senate Banking Committee on February 27th with a unanimous 9-0 vote. It now proceeds to the Senate floor for further consideration.

The bill empowers the Texas Comptroller of Public Accounts to buy, sell, and trade investments a prudent investor would choose. It explicitly states that Bitcoin and other cryptocurrencies can act as a hedge against inflation and economic instability, enhancing the state's financial security.

Following the National Trend

Texas is not alone in exploring this strategy. Several other US states, including Oklahoma, Arizona, and Utah, are also considering similar bills to diversify state finances and mitigate US dollar inflation risks.

Bill Evolution: From Bitcoin-Only to Diversified

Initially introduced as a Bitcoin-only bill by State Senator Charles Schwertner in January 2025, SB-21 underwent a significant revision in February. This change followed President Trump's January 23rd executive order establishing a commission to study a potential "digital asset stockpile." The revised bill now allows for investment in a broader range of digital assets.

Market Impact and Expert Opinions

While the February 18th public hearing for SB-21 was viewed as symbolic by Nexo analyst Iliya Kalchev, he emphasized that significant market reaction hinges on Texas actively using the bill to acquire Bitcoin and other cryptocurrencies for its portfolio.

Bitcoin advocate and Riot Platforms VP of Research, Pierre Rochard, testified in favor of the bill, arguing that a Bitcoin reserve is crucial for preparing Texas for potential economic downturns and protecting against fiscal uncertainties. He highlighted Bitcoin’s unique auditable nature, contrasting it with the lack of transparency in traditional financial institutions.

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